GameStop Can Withstand Wal-Mart Entry Into Used Games

Wal-Mart's entry into used videogames is hardly a death blow for GameStop. Other retailers have tried and failed to knock it out.

GameStop shares are being zapped on worries about Wal-Mart's entry into the used-videogame market.

Early Tuesday, Wal-Mart Stores (ticker: WMT) announced that on March 26 it would begin accepting used videogames from customers, who could then use the value of their trade-in for any purchases at the chain or at its Sam's Club stores. Wal-Mart will in turn refurbish the games and sell them in "like-new condition."